Middletown Township Council to vote on Local Service Tax at Nov. 25 meeting

MIDDLETOWN - Township Council’s discussion regarding an ordinance that would establish an annual Local Services Tax (LST) in 2014 brought only five residents to its special meeting Nov. 6 to hear about the implications of the proposed tax.

Repeating the presentation he made to council Oct. 28, council Vice Chair Mark Kirchgasser, who chairs the finance committee, said the LST under consideration would be an annual $42 flat tax per person employed in Middletown who earns more than $12,000 per year.

If enacted by council as anticipated at its Nov. 25 meeting, the new tax would generate $350,000 to $400,000 in annual revenue to Middletown. Of this, 25 percent would be required by law to go toward funding emergency services provided by the township’s volunteer first responders. The remainder would go toward annualized traffic improvements to the Baltimore Pike Route 452 intersection.

Kirchgasser reiterated that the greatest problem impacting health, safety and welfare in Middletown is traffic congestion at the intersection, caused by increasing population west and far west of the township.

“All trails lead to Middletown,” said Kirchgasser, again quoting the township’s slogan. “And then through to I-95, I-476 (the Blue Route) and the Pennsylvania turnpike. We’re a commuter pinch point.”

Kirchgasser noted traffic build-up on the pike (Route 1) and on Pennell Road (Route 452) impacts half of Middletown’s linear roadways, which represents half of the township’s geographic area. That’s because drivers approaching the township from all directions seek alternative routes to avoid the intersection.

“It’s time to address the problem; we can’t wait for the state,” Kirchgasser said about the need to re-engineer the intersection and improve traffic flow.

But he pointed out that none of the revenue sources in the township’s 2013 operating budget of $3.8 million can absorb the annual cost required to make the traffic improvements. Therefore, he said, revenue is needed from a source that doesn’t burden Middletown taxpayers, that directs funding from commuters to fix a traffic problem and that will monetarily benefit the township’s volunteer first responders.

Kirchgasser, who understands the need for funding since he’s a Middletown Fire Co. volunteer, said other revenue sources could be through a bond issue, through the township’s capital budget or via developers’ contributions proportionate to their projects’ impact on the intersection. He noted that currently the township has $125,000 in its traffic fund contributed by developers as required.

The developers of the proposed Pond’s Edge commercial and residential project on Baltimore Pike near the intersection have committed to $350,000 for traffic improvements. Other contributions are expected from Granite Run Mall’s new owner -- BET Investments -- and from the developers of the former Franklin Mint property.

Kirchgasser said that 40 of Delaware County’s 49 municipalities levy the LST, sometimes called the Occupational Privilege Tax. Middletown resident Mary Jo Grove, president of a Marple-based business, noted Marple Township has collected a similar tax as a weekly payroll deduction for years.

“It’s a revenue source we (Middletown) have been missing. It’s about time,” she said.

Township Manager Bruce Clark said council was not required to hold the special 6p.m. meeting. It was called for informational purposes and to get feedback from the Middletown business community.